GMD trade ideas
GM - DAILY CHART Hi, today we are going to talk about General Motors and its current landscape.
General Motors is poised to receive increasing attention from the market as relevant events are taking place. The auto sector has signaled a yellow flag for the market as a confluence of data raises the inherent risk of the sector. The US Auto Loans Delinquent by 90 or More Days for the third quarter of 2019 edges a new record high of 4.71%; also the New York Fed survey of consumer credit has shown a spike in the rate of auto-loan rejections to 8.1% early this year, a discrepancy from 4.5% reported in the same period last year. A context that can represent an upcoming slowdown of sales on the sector and possible an increase in the risk of the company acquire bad debt, possibly implying in distressing days ahead for GM.
Thank you for reading and leave your comments if you like.
To have access to our exclusive contents, join the Traders Heaven today! Link Below.
Disclaimer: All content of Golden Dragon has only educational and informational purposes, and never should be used or take it as financial advice.
New strikes = bad newsDespite the fact that GM is expectin things to be back to normal in a few more weeks, the strike cost General Motors has already reached $2 billion in production and cost employees nearly $1 billion in wages.
One of the custimers said one vehicle was in the shop for 28 days waiting on one part to come in.
Quick reminder: United Automobile Workers (UAW) has called strike against General Motors on September 15. The union represents some 46,000 auto workers who are striking for “fundamental rights of working-class people of this nation,” according to UAW vice president, Terry Dittes. The decision to strike came after a meeting Sunday morning at GM’s Detroit headquarters where nearly all of the 175 local union leaders present voted to strike. The strike does not affect Ford or Fiat Chrysler, which extended contracts with workers before the meeting...
GMCO34SHORT to ~~ 145.00
After the addition of this mark, it is possible to increase up to 150.00
---------------------------------------------------------------------------------------------------------------------
This article is not an inducement to act. I am not responsible for your losses.
------------------------------------------------------------------------------------------------------------------------
Strat 2- GM 38 Put -> PT 37.41, 37.21(1) GM price up after ER but the guidance is not so bright - China uncertainty + Strike impact
(2) Morning made lower low 8:30-8:45AM LA time.
(3) Entered Trade 38 Put for .35c, SL .20c (Reached, but did not sell, held til EOD,; Would have re-entered EOD at .25c)
SL: .20c
PT: .75(If strong momentum + Bot Consolidation, Trail Stop here), .90
RR: 1:2.67 , 1:3.67
Scenario 1:
Break below 38.09 and reach PT
Scenario 2:
Reach .20c SL, re-enter at break below 38.09
If no break below, Enter Call Debit Spread 39-40 or Credit Put 38 at Break of 38.7 HOD
GM: Short-term Long; Long-term ShortThis is not investment or trading advice. Always do your own due diligence.
GM is obviously trading upward within a rising channel over the shorter term. I plan to trade the rises and falls, so long as it respects the channel. I do believe it will break to the downside ultimately.
The company, over the longer term(10yrs) isn't going to be appearing in my portfolio unless it starts amortizing its debt more agressively. Right now they are agressively financing their expansion with debt and I'm personally not comfortable holding companies with more debt than equity.
BTO GM Jan 17/35Call @ 2.17GM current price 35.44. Avg volume is 7,910,315 and this represents an active trading on this stock. The 1 year target is 47.61, this means that
this stock is expected to move 34% from now on. I am already on this trade but GM goes down for sometime but still believe it is going up again
therefore i bought additional contracts and avg price was 3.36. My plan if GM goes down is to buy again my option contracts at price 1.40.
Please note that, i am sharing a trade idea which is part of my own portfolio and fits my requirement. Following this idea is your responsibility at all times as there is a risk involved.
GM Possible Outcomes | WeeklyGeneral Motors has been following an ascending wedge for months now. Currently approaching the ascending support line, news of strikes from UAW members may be the catalyst that causes this asset to fail at the support line. Here we have pointed out minor and major support lines , and a theoretical path for price to follow. After a large gap down, momentum seems to be heading downward, if price sticks to the support, and ends up fulfilling the wedge, expect that window to be closed . (gap window) Long story short, if support holds, we expect price to return to its original path within the wedge. If that is not the case we expect to see a fall to the following support lines.
GM: To Be or Not To Be is a Question!There is a new strike against General Motors after 12 years because GM dumped health care for striking workers.
There is a passive prospect for GM because much too powerful UNION is bad for manufacturers, especially for GM.
From the monthly chart, we can see there is a contracting triangle, which may be a reverse pattern or a continuous form.
If the price breaks out either side of triangle, upward side or down ward side, a sharp rise or plunge will happen.
If the strike becomes bigger and bigger, it is most likely to break down, which would be a disaster for both GM and investors.
Hopefully the dispute between GM and worker could get a good deal.
In the long term, America is not good for manufacturing industry because of the too powerful UAW and slack workers. So manufacturing such as car-making, iron and so on, will be transferred to Asia continuously.
High technology and finance is good and appropriate for US, no matter how Trump calls for the return of manufacturing industry.
GM long setupGM’s innovation outlook is trending up based on a current score of 89 out of 99, outperforming sector average. Jobs growth over the past year has decreased and insiders sentiment is neutral. GM is an Average Performer in terms of sustainability. It is most exposed to Enel SpA as its supplier. Over the past 4 quarters GM beat earnings estimates 4 times and it pays dividend higher than its peers.
For more analysis and articles visit our website .
GM strike starting this evening - Short opportunityAnother big news story this weekend: GM employees begin strike this evening (Sunday). I think fundamentally this will hurt GM short term, and provide for some good shorting opportunities. I will watch it in the morning, as I expect a gap down. I then may enter on a retest to ride it down further ... Possibly to the next big support area.
